RPM International Inc (RPM)

Cash ratio

May 31, 2025 Feb 28, 2025 Nov 30, 2024 Aug 31, 2024 May 31, 2024 Feb 29, 2024 Nov 30, 2023 Aug 31, 2023 May 31, 2023 Feb 28, 2023 Nov 30, 2022 Aug 31, 2022 May 31, 2022 Feb 28, 2022 Nov 30, 2021 Aug 31, 2021 May 31, 2021 Feb 28, 2021 Nov 30, 2020 Aug 31, 2020
Cash and cash equivalents US$ in thousands 302,137 241,895 268,683 231,555 237,379 248,905 262,746 240,586 215,787 193,870 232,118 197,574 201,672 193,191 192,851 213,212 246,704 249,214 272,945 251,765
Short-term investments US$ in thousands 6,500 5,100 6,000 3,900
Total current liabilities US$ in thousands 1,467,450 1,243,460 1,293,890 1,282,580 1,466,060 1,201,950 1,254,360 1,268,650 1,490,800 1,119,510 1,290,030 1,649,250 2,016,410 1,934,900 1,483,590 1,163,620 1,331,410 1,087,500 1,132,690 1,092,780
Cash ratio 0.21 0.19 0.21 0.18 0.17 0.21 0.21 0.19 0.15 0.17 0.18 0.12 0.10 0.10 0.13 0.18 0.19 0.23 0.24 0.23

May 31, 2025 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($302,137K + $—K) ÷ $1,467,450K
= 0.21

The analyzed data of RPM International Inc's cash ratio, spanning from August 2020 through May 2025, reveals relatively stable but modest levels of liquidity in terms of cash and cash equivalents relative to current liabilities.

Throughout the observed period, the cash ratio fluctuated within a narrow band, predominantly between 0.10 and 0.24, indicating that at most points, the company maintained cash holdings sufficient to cover approximately 10% to 24% of its current liabilities. The earliest recorded ratio in August 2020 was 0.23, which remained relatively steady through November 2020 and February 2021, with minor fluctuations.

A declining trend is observed starting in May 2021, when the ratio dropped to 0.19, followed by further decline to 0.18 in August 2021, and a more pronounced decrease to 0.13 in November 2021. The ratio continued to decrease into early 2022, reaching a low of 0.10 in February and May 2022, suggesting a contraction in immediate liquidity.

From mid-2022 onward, there is a modest recovery, with the ratio rising back to 0.12 in August 2022, then increasing to approximately 0.18 in November 2022, and further to 0.17 in February 2023. The ratio appears to stabilize around or slightly above 0.15 in the subsequent periods, reaching as high as 0.21 in November 2023 and February 2024.

Overall, the cash ratio's trend indicates that RPM International Inc has maintained a conservative stance on liquidity, consistently positioning its cash holdings to cover roughly 10% to 21% of its current obligations. The fluctuations suggest the company adjusts its cash holdings in response to operational needs, market conditions, or strategic cash management practices. The observed stability with occasional increases points to a balanced approach to liquidity management, without engaging in excessive cash accumulation or deferral of liquidity requirements over the analyzed period.


Peer comparison

May 31, 2025

Company name
Symbol
Cash ratio
RPM International Inc
RPM
0.21
Axalta Coating Systems Ltd
AXTA
0.44
PPG Industries Inc
PPG
0.27